Anyone else bummed the 401K limit in 2008 didn't change?

[Ronstar]

How much match were you giving? The terms of Safe Harbor are 3% non-elective (matching even if they contribute nothing) or 4% elective (only match what they contribute, up to 4%).

Almost everywhere I've worked has had a 401k match as generous or moreso than this.

In our case, we have it because of me I'm not HCE, but am most likely to hit it of all the employees since I was hired first. I knew it would be in my best interests to keep those pesky compliance rules on the sideline if possible.

we give 50 cent match per dollar up to 10%. But very few employees are in the 401k or invest at the pct levels that the owners do. we were told that going to a safe harbor would cost us around 25k per year. I personally would benefit even after this cost, but other owners would not. I think I need to put together a stronger argument because I cant make a catch-up contribution even though I'm over 50.

 

[NinjaPigeon]

we give 50 cent match per dollar up to 10%. But very few employees are in the 401k or invest at the pct levels that the owners do. we were told that going to a safe harbor would cost us around 25k per year. I personally would benefit even after this cost, but other owners would not. I think I need to put together a stronger argument because I cant make a catch-up contribution even though I'm over 50.

Intriguing. I wonder how they come up with the 25k figure.

 

[nun]

I'm not bummed that the limit didn't change, just put money in a ROTH or an IRA. There's always after tax saving or if you are desperate you could open an after tax annuity.

In my case I have access to a state 401k type plane, a 403b and a 457 which I think is a bit ridiculous when some people don't even have 401k plans.

 

[Texas Proud]

we give 50 cent match per dollar up to 10%. But very few employees are in the 401k or invest at the pct levels that the owners do. we were told that going to a safe harbor would cost us around 25k per year. I personally would benefit even after this cost, but other owners would not. I think I need to put together a stronger argument because I cant make a catch-up contribution even though I'm over 50.

Hmmm... I was just talking to our plan administrator and asked him about being top heavy.... he said the catch up does not come into the calculation and is something that should be done first for the owners...

Don't know why you can't...

 

[Ronstar]

Intriguing. I wonder how they come up with the 25k figure.

I believe it was mainly funding the matches of those that previously didnt contribute, but I didnt get the exact details.

 

[Ronstar]

Hmmm... I was just talking to our plan administrator and asked him about being top heavy.... he said the catch up does not come into the calculation and is something that should be done first for the owners...

Don't know why you can't...

I thought that also. We have a third party administrator that I called, and she said that I may be able to use the catch-up, but it was being used temporarily as a credit for use in passing the test. She would know more by year's end. I really have to get into this further, because I need to max out since I have only 2-3 years left.